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5 Hidden Benefits of Using MVP Development Services for Startups
Should you begin software development by building an MVP for your product? What are the benefits of MVP for startups, and why are more and more companies using MVPs to launch successful apps?
Launching a new digital product can be a daunting task that requires a lot of resources. You have to consider many things – market/product fit, target audience, market saturation, etc. Getting everything right is highly challenging. If you work in a big team with professionals from various fields, planning out the entire process without making any wrong assumptions is virtually impossible.
This is why the popularity of MVPs is growing faster and faster. Building an MVP before diving into a complex, lengthy, and expensive development cycle is a great way to test the idea and check its validity. In this article, we will focus on the top five benefits of MVP for startups and go over the most successful examples of MVP implementation.
This is why the popularity of MVPs is growing faster and faster. Building an MVP before diving into a complex, lengthy, and expensive development cycle is a great way to test the idea and check its validity. In this article, we will focus on the top five benefits of MVP for startups and go over the most successful examples of MVP implementation.
Basic Elements of MVP Development
Let's begin by breaking down the concept of an MVP and discussing each element in detail.
Market and User ResearchSometimes even the best idea simply does not fit into the current market. Developing a clear understanding of the target market and conducting extensive research is vital for building an MVP. On top of that, you need to learn as much as you can about your potential customer.
You can begin by conducting surveys and collecting various target audience's pain points to find common ground. Once you detect a recurring pattern in customer behavior, you can create user personas. From that, you can try to determine which problem you will be solving with your product.
Competitor analysisEstablish your main competition and identify where they are positioned within the market. Additionally, learn their customer experience, pricing structure, and social media presence. When you enter a new market space, identifying the main pitfalls and minimizing the risks is pivotal for success. Learning the strengths and weaknesses of your primary competition can also help you figure out your unique value proposition.
Definition and Prioritization of MVP FeaturesNow that you know the market and your competitors, it is time to define the essential features for your MVP. As a basic app version with only functional features, an MVP should only include the functions necessary to solve the main problem.
To establish essential elements, categorize them based on priority and go with the high-priority ones for your MVP. You can implement the remaining features later in the development cycle after the target audience has validated the idea.- Early TestingThe final element is the development of your MVP and rigorous testing thereof. After the release, collect feedback and learn from your mistakes. This part will help you reevaluate your idea and fine-tune some inconsistencies. Make sure to use customer feedback to make your application more usable and improve the user experience.
5 Benefits of Using MVP Development for Startups
The advantages of using an MVP for a startup are vast, but we will focus on the most significant and unexpected ones.
- A Better Understanding of Your Customer's Needs01
- A Better Understanding of Your Customer's Needs01
The core function of an MVP for any business is to test its validity by collecting user feedback. During this close communication with your audience, you will be able to establish a trusting bond with them and understand their needs and wishes. This usually occurs via several iterations when you change the application based on customer suggestions and concerns and release a new version. Building a trustful relationship with your audience is one of the most significant benefits of MVP development. Not only does this help to improve your app, but also you can create a transparent relationship with your customers.
- Shift Left Testing02
- Shift Left Testing02
Early testing is another item on the list of benefits of building an MVP for your startup. Starting out with an MVP allows you to run tests as early in the pipeline as possible. Every new iteration comes with rigorous testing and bug fixing. Every developer knows that the earlier you detect a bug, the lower the fixing price. If you manage to identify most errors in the early stage, you will save a ton of time and money. In the production phase, the costs to fix bugs can get up to 30 times higher compared to the requirements gathering stage.
- Constant Updates03
- Constant Updates03
Being extremely responsive to the ever-changing requirements of the market is another one of the pros for MVP development for startups. By choosing short iterations and adopting the MVP strategy, you allow yourself to create and release updates quickly. In addition to that, you will be able to implement new technology in new app versions without disrupting the whole process. The ability to swiftly adapt to the fast-paced market and implement the latest technology in your work gives you an incredible advantage in the modern app environment.
- Low-Cost Market Validation04
- Low-Cost Market Validation04
One of the most significant benefits of using an MVP for a startup is cost-friendly market validation. With an MVP, you will be able to test your idea in the real world much faster than otherwise. Real market conditions cannot be fully theorized, which is why putting your product out there in the early stage of development is a great way to test how customers will respond to it. On top of that, you will be introducing your product to the audience, thus building a loyal following around your startup and paving the way for the next iterations.
One of the most significant benefits of using an MVP for a startup is cost-friendly market validation. With an MVP, you will be able to test your idea in the real world much faster than otherwise. Real market conditions cannot be fully theorized, which is why putting your product out there in the early stage of development is a great way to test how customers will respond to it. On top of that, you will be introducing your product to the audience, thus building a loyal following around your startup and paving the way for the next iterations.
- Minimal Risks05
- Minimal Risks05
Rolling out a large-scale application development process is a risky undertaking. The market might change, the economy might pivot, or a trend might cease to exist. In the rapidly evolving application market, launching small apps with functional features and adding new ones over the years saves valuable resources and allows for flexibility.
If you face the need to alter the application in the course of a few months or years, adding or removing features, going in small iterations will save you a lot of effort. Keeping risks to the minimum is one of the benefits of MVP for your startup business.
If you face the need to alter the application in the course of a few months or years, adding or removing features, going in small iterations will save you a lot of effort. Keeping risks to the minimum is one of the benefits of MVP for your startup business.
Rolling out a large-scale application development process is a risky undertaking. The market might change, the economy might pivot, or a trend might cease to exist. In the rapidly evolving application market, launching small apps with functional features and adding new ones over the years saves valuable resources and allows for flexibility.
If you face the need to alter the application in the course of a few months or years, adding or removing features, going in small iterations will save you a lot of effort. Keeping risks to the minimum is one of the benefits of MVP for your startup business.
If you face the need to alter the application in the course of a few months or years, adding or removing features, going in small iterations will save you a lot of effort. Keeping risks to the minimum is one of the benefits of MVP for your startup business.
Ready to get all these benefits for your newly created business?
Examples of Successful Startups Where an MVP has been Implemented
Fayrix is an offshore software development vendor with 12 years of experience in tech, research and development, and startup building. We support the statement that once upon a time, each great company was started with a winning idea - and that's why we are here to assist startup companies on their way to industry recognition and market acceptance. We can help you with business analysis, idea validation, prototyping, development, and DevOps services delivered according to the tech industry quality standards.
Take a look at our recent startup projects, which are innovative but created with human needs in mind.
Take a look at our recent startup projects, which are innovative but created with human needs in mind.
Foursquare
Foursquare is a full-featured city guide that helps people explore different locations, get useful tips, and find communities worldwide. But when the app was first released, its functions were limited to checking into different places and receiving badges as a part of the gamification rewarding system. After the idea panned out, the app creators expanded the features and eventually turned it into the popular city guide it is today.
Uber
Uber has become so huge that it does not require any introduction. With services like Uber Eats, grocery and pharmacy delivery, etc., Uber is one of the top applications globally. However, back in 2010, this app's only function was connecting iPhone users in San Francisco to drivers. Over the following decade, the application grew to the size it is today, but it started with a simple MVP.
Groupon
In 2008, Groupon was released as a small website that emailed coupons as PDF files to subscribers. After the idea proved successful, the company created its own voucher system and a sophisticated web and mobile service. Now, it is the largest marketplace that offers activities, discounts, and various coupons.
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ACTech
ACTech is a Greece-based startup that provides design, installation, maintenance, and service of electronic and pneumatic equipment for the marine industry. The biggest challenge that the company faced was the inefficient management system that needed revamping.
Fayrix chose the MVP approach and gradually implemented an effective project management system that allowed smooth and productive cooperation with contractors. As a result, the company has saved 33% on development costs each month and received a well-functioning system.
If you would like to learn more about the benefits of developing an MVP for a startup, contact our team at Fayrix. We will help you collect all the crucial elements of an MVP, test your idea, and scale up in the future. With Fayrix, you can also hire a virtual team of developers and build your next great application with a reliable partner.
Learn more
Fayrix chose the MVP approach and gradually implemented an effective project management system that allowed smooth and productive cooperation with contractors. As a result, the company has saved 33% on development costs each month and received a well-functioning system.
If you would like to learn more about the benefits of developing an MVP for a startup, contact our team at Fayrix. We will help you collect all the crucial elements of an MVP, test your idea, and scale up in the future. With Fayrix, you can also hire a virtual team of developers and build your next great application with a reliable partner.
Learn more
Overwrite
Overwrite is a startup with the goal to transform the educational experience using machine learning and deep learning technologies. The market of educational applications is saturated and challenging to penetrate. This is why we decided to build an MVP and check if their idea is viable under realistic market conditions.
Due to the lack of market research made by the startup owners, the realization of their MVP idea was challenging. Experts at Fayrix conducted an in-depth dive into the market and helped the startup get a clear understanding of the app concept. As a result, we have created one of the best machine learning-based educational applications while saving 49% of the development costs each month.
Learn more
Due to the lack of market research made by the startup owners, the realization of their MVP idea was challenging. Experts at Fayrix conducted an in-depth dive into the market and helped the startup get a clear understanding of the app concept. As a result, we have created one of the best machine learning-based educational applications while saving 49% of the development costs each month.
Learn more
FAQ
First, an MVP is the best way to validate your idea in the real world and build a trusting relationship with your audience. Secondly, the MVP approach allows you to start testing earlier in the development cycle and minimize the risks associated with app development. Finally, building an MVP is cost-efficient and helps businesses quickly react to the changes in the market.
Developing an MVP begins with in-depth market research and competition analysis. After detecting your users' needs and pain points, you can determine the essential features for your MVP and start the development process. Later, test your application, release it to the public, and collect feedback to use in the next iterations.
MVP is a cost-friendly way to test your application idea and product/market fitness in the real world. Many successful apps began their journey with a basic MVP and expanded their features over the next few years. Prominent examples include Uber, Foursquare, and Groupon.
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